net lease investment property - cimls · 2012. 9. 26. · national net lease investment group...

Bull Realty, Inc. 1801 Piedmont Avenue

Atlanta, GA 30324 www.BullRealty.com

FL License #CQ1026029

Sheree Strome, CCIM V.P. National Net Lease Investment Group 404.876.1640 ext. 122 [email protected]

Net Lease Investment Property Callaway, FL 8.0% CAP RATE $1,473,000

Actual Store Source: Google Maps

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Sheree Strome, CCIM National Net Lease Investment Group 404.876.1640 ext. 122 [email protected]

7436 Highway 22 Callaway, FL 32404

Disclaimer

The Confidential Memorandum contains selected information pertaining to the Property but does not purport to be all-inclusive or to contain all of the information that a prospective purchaser may require. All financial projections are provided for general reference purposes only and are based upon assumptions relating to the general economy, competition and other factors, which therefore, are subject to material change or variation. Prospective purchasers may not rely upon the financial projections, as they are illustrative only. An opportunity to inspect the Property will be made available to qualified prospective purchasers.

In this Confidential Memorandum, certain documents, including financial information, are described in summary form and do not purport to be complete or accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to review independently all documents.

This Confidential Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Bull Realty Inc. or the current Owner/Seller. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein.

Owner/Seller expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Owner/Seller shall have no legal commitment or obligation to any purchaser reviewing this Confidential Memorandum or making an offer to purchase the Property unless a written agreement for the pur-chase of the Property has been fully executed, delivered and approved by the Owner/Seller and any conditions to the purchaser’s obliga-tions therein have been satisfied or waived.

This Confidential Memorandum may be used only by parties approved by the Owner. The Property is privately offered, and by accepting this Confidential Memorandum, the party in possession hereof agrees (i) to return it if requested and (ii) that this Confidential Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Confidential Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Bull Realty, Inc. or Owner/Seller. The terms and conditions set forth above apply to this Confidential Memorandum in its entirety and all documents, disks and other information provided in connection therewith.

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Table of Contents

Disclaimer 2

Table of Contents 3

Executive Summary 4

Investment Overview 5

Landlord and Tenant Responsibilities 6

Aerials and Survey 7-8

Location Maps 9

Demographics 10

About the Tenant 11

Comparables 12

Broker Profiles 13

Confidentiality Agreement 14

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Executive Summary

Highlights

Price: $1,473,000 8.0% Cap Rate Investment grade tenant Built in 2010 13 years remaining on

initial term of NN lease Traffic count: 15,700 VPD 5 miles to Panama City 8 miles to Tyndall AFB

Bull Realty is pleased to offer for sale this 15 year double net single tenant, Dollar General, located in Callaway, FL (Panama City MSA). This +/- 9,014 sq ft store, built in 2010, is lo-cated five miles east of Panama City on the Florida panhandle, a popular tourist destina-tion renowned for its beautiful beaches. Approximately eight miles south is Tyndall Air Force Base, home of the 325th Fighter Wing Headquarters. Tyndall AFB, with approxi-mately 29,000 acres, provides an estimated $571MM economic impact within a 50 mile radius. Within a 5 mile radius of the subject property, the population is 42,893 with an av-erage household income of $45,153. This rare 15 year NN lease is corporate guaranteed and has an the initial term through July of 2025. Current annual rents are $117,828 with an offered cap rate of 8.0%. The lease has a 3% rent increase in Year 11 and three 5-year renewal options, each with a 10% rent in-crease. This well located store has minimal landlord responsibilities. Taxes are fully reimbursed and insurance is paid directly by Dollar General through their national insurance program. Parking lot maintenance expenses are fully reimbursed by Dollar General based upon ac-tual increases incurred by the Landlord in the prior year.

This offering provides investors with an investment grade tenant, a desirable location and an attractive cap rate with future rent increases. As single tenant cap rates continue to compress, this offering enables investors to lock in a long lease term, guaranteed returns and an easily financeable asset.

Dollar General is the largest “small box” discount retailer in the US. Headquartered in Goodlettsville, TN, (Nashville) the company was established in 1939. In April of 2012, Stan-dard & Poor’s upgraded the company’s rating from BB+ to BBB-, reflecting their sustained success and performance with over 10,000 stores in 39 states. Dollar General continues to also expand its’ Market Store and Plus store concepts in core secondary and tertiary mar-kets. In 2012, Dollar General plans to open 625 new stores creating over 6,000 new jobs.

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Investment Overview

Property Information Subject Property: Single Tenant Property Address: 7436 Highway 22 Callaway, FL 32404 Bay County Price: $1,473,000.00 Rentable Square Feet: +/- 9,014 Price Per Square Foot: $163.41 Current Annual NOI: $117,828 Base Rent: $13.07 /sq ft Cap Rate: 8.0% Year Built: 2010 Lot Size: +/- 1.83 acres Type of Ownership: Fee Simple

Lease Summary

Tenant Trade Name: Dollar General Tenant: Dolgencorp, Inc. Ownership: Public Lease Type: Double Net Lease Lease Commencement: August 1, 2010 Lease Expiration: July 31, 2025 Rent Increases & Renewal Options: 3% increase in Year 11 of Initial Term Three 5 year each with 10% increase Rent Schedule:

Annual Term Dates Rent Cap Rate Initial Term 8/1/10—7/31/20 $117,828 8.0% Initial Term 8/1/20—7/31/25 $121,356 8.2% Option 1 8/1/25—7/31/30 $133,500 9.1% Option 2 8/1/30—7/31/35 $146,844 10.0% Option 3 8/1/35—7/31/40 $161,532 11.0%

Landlord and Tenant Responsibilities:

See Following Page

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Sheree Strome, CCIM National Net Lease Investment Group 404.876.1640 ext. 122


Landlord and Tenant Responsibilities

Property Information Subject Property: Single Tenant Property Address: 7436 Highway 22 Callaway, FL 32404 Bay County Price: $1,473,000.00 Rentable Square Feet: +/- 9,014 Price Per Square Foot: $163.41 Current Annual NOI: $117,828 Base Rent: $13.07 /sq ft Cap Rate: 8.0% Year Built: 2010 Lot Size: +/- 1.83 acres Type of Ownership: Fee Simple

Lease Summary

Tenant Trade Name: Dollar General Tenant: Dolgencorp, Inc. Ownership: Public Lease Type: Double Net Lease Lease Commencement: August 1, 2010 Lease Expiration: July 31, 2025 Rent Increases & Renewal Options: 3% increase in Year 11 of Initial Term Three 5 year each with 10% increase Lease Responsibilities:

Tenant Responsibilities: Interior: Maintenance and repair of all interior non-structure portions of build-

ing

Utilities: All utilities paid by Tenant

Taxes and Insurance: Full reimbursement of taxes to Landlord, and direct payment of insurance to tenant’s national insurance provider (Landlord listed as additional insured.)

HVAC: Maintenance, repair and replacement with potential shared responsi-bility in the last 2 years of the lease term with Landlord

Exterior: Plate glass windows and doors, all sign panels, pylon sign founda-tions, base, and pole, light bulb replacement in parking area

Parking Lot Maintenance Contribution: Payment of $300 per month for Park-ing Lot Maintenance to Landlord with annual increases for prior year actual allowable expenses

Landlord Responsibilities: Taxes: Fully reimbursed by Tenant Exterior: Roof, structure, gutters, downspouts, storefront, canopies Parking Lot Maintenance (reimbursed by Tenant) - paving, striping, mainte-

nance of grounds, fencing, if any, cleaning, snow removal, light pole repairs EXCEPT capitalized repairs (e.g. replacement of parking lot.)

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Aerial

Elementary

Church

Callaway Arts &

Leisure Center

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Aerial and Survey

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Location Maps

Highlights

Price: $1,473,000 8.0% Cap Rate Investment grade ten-

ant Built in 2010 13 years remaining on

initial term of NN lease Traffic count: 15,700

VPD 5 miles to Panama City 8 miles to Tyndall AFB

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Tenant Description

Dollar General Historical Growth Chart (DG) Oct 2011 to Sep 2012

Dollar General is the largest “small box” discount retailer in the US. Now headquartered in Goodlettsville, TN, the company was established in Scottsville, KY in 1939. Today, with 10,000 stores in 39 states, Dollar General, whose store format is generally in suburban markets, is expanding into more densely populated areas and often “re-using” vacant retail locations. On January 3rd Dollar General announced plans to open 625 new stores in 2012 thereby creating over 6,000 new jobs. These new stores include the company’s initial expansion into the states of California and Massachusetts.

Their strategy is to deliver a wide variety of brand name retail and consumer products at value. Dollar General’s mission is for convenience, quality brands and low prices!

The company launched a successful IPO in 2009 (Symbol "DG"). For the second quarter of 2012, DG reported a 10.4% increase in sales from $3.58 billion a year ago to $4.95 billion.

In April of 2012, Dollar General’s S & P rating was upgraded from “BB+” to “BBB-” . According to Standard & Poor’s credit analysis, Ana Lai, “The ratings on Dollar General reflect our expectation that the company’s value-focused merchandising strategy and continued store expansion will sustain the positive operating momentum and contribute to further improvement in credit measures.”

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Demographics and Traffic Counts

37,500 VPD

2011 Demographics (STDB) 1 mile Population 5,205

Households 2,037

Average Household Income $51,581

Median Age 36.5

3 mile Population 24,375

Households 9,775


Median Age 37.7

5 mile Population 42,893

Households 16,989


Median Age 37.4

15,700 VPD

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Comparables

Property Address 10270 Stringfellow Rd | St James City, FL

Price Sold | PSF $1,600,000 | $175.82

Date Sold Jan 2012

Lease Expires: Not Available

Sq Ft | Year Built 9,100 | 2011

Property Address 145 NW 39th Ave | Gainesville, FL

Price Sold | PSF $1,605,400 | $178.10

Date Sold Nov 2011



Property Address 6336 Sherman Hills Blvd | Brooksville, FL

Price Sold | PSF $1,699,212 | $188.51

Date Sold Apr 2011



Property Address 1502 E Baker St | Plant City, FL

Price Sold | PSF $1,725,000 | $191.37

Date Sold Jan 2012

Lease Expires: Jan 2027

Sq Ft | Year Built 9,014| 2012 SUBJECT PROPERTY

Asking Price: $1,473,000

Price per Sq Ft: $163.41

Sq Ft: +/- 9,014

Cap Rate: 8.0%

Year Built: 2010

Lease Expires: Jul 2025

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Broker Profile

Nancy Miller joined Atlanta based Bull Realty in 2001. Nancy has held a Georgia real estate sales license for over 25 years and is licensed in several Southeastern states. She brings experience from both sides of the table as a real estate investor and broker. Nancy personally owns several investment properties, including a net leased Dollar General. Since joining Bull Realty, Nancy has brokered well over one hundred million dollars in investment sales and leasing transactions.

Nancy‘s personalized approach includes indentifying client goals, priorities and timeframes. She will develop a game plan designed to exceed expectations which translates into adding value and maximizing returns.

Sheree Strome has been in the commercial real estate business for more than twenty-five years from the financing side of the business. She has underwritten more than five hundred million dollars of commercial properties establishing strong relationships with lenders, brokers and principals throughout the Southeast. Obtaining the best financing and dealing with existing financing issues has proven to be a major benefit for her clients in this cycle.

Sheree utilizes her relationships and extensive knowledge of financing to help clients with existing financing issues and help structure the best possible transaction to maximize investment goals.

National Net Lease Team The National Net Lease Team works with developers, buyers and sellers throughout the US. They are an excellent resource for current market trends, cap rates, lender resources, and off as well as on-market net lease opportunities. They are both active members of ICSC and are CCIM’s. They are supported by a full time licensed assistant, Holly Hollinger, and an outstanding marketing and research team.

About Bull Realty Bull Realty is a commercial real estate brokerage firm headquartered in Atlanta, Georgia. The firm is best known for their successful national marketing platform to ensure that available properties are marketed aggressively to the buyer and broker community. They also feature:

• Broker specialization by commercial property type • REO and troubled asset marketing for over 74 lenders, nationwide • Google consistently chooses BullRealty.com as the number one website for the most often used search phrase used by people looking for

commercial real estate in Georgia, “Commercial Real Estate Georgia”. • Comprehensive marketing services which include video, social media and radio for appropriate properties. • Founder, Michael Bull hosts a national weekly Commercial Real Estate Show, talk radio show about commercial real estate which airs on radio

stations and on-line at www.CREshow.com.

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Sheree Strome, CCIM National Net Lease Investment Group 404.876.1640 ext. 122 [email protected] FL License #SL3244208


Confidentiality Agreement

This Confidentiality Agreement (“Agreement”) is made and agreed to for the bene-fit of the undersigned party (“Prospect”), the owner of the subject property (the “Seller”) and undersigned agent Bull Realty Incorporated (“Broker”).

Now therefore in consideration of the privileges granted to Prospect with respect to receiving certain confidential information, and other good and valuable considera-tion, the Prospect hereby agrees to the following:

I. Confidential Information: Prospect will receive confidential information regarding property referred to as Dol-lar General, 7436 Highway 22, Callaway, FL. Prospect agrees to not disclose to any person that the Property or the note may be available for sale or lease, or that dis-cussions or negotiations are taking place concerning a possible purchase of the Property or the note, nor any terms, conditions, or other facts with respect to the Property or the note, including but not limited to tenant information, lease rates, lease expirations, income and expenses, and any such possible purchase, including the status thereof. The term “person” used in this agreement shall be interpreted broadly and shall include, without limitation, any corporation, company, partnership or individual other than parties to which Broker approves in writing. Prospect agrees to not contact the Seller, the management, the tenants, the lender, the vendors, the insurers, the employees or the customers of any business at the site.

II. Acting as a Principal: Prospect hereby warrants that it is acting as a principal only, and not as a broker or agent, regarding this contemplated transaction. Prospect acknowledges and agrees that Bull Realty, Inc., will act in an agency capacity on behalf of the Seller, and will be used as the sole broker or agent in connection with the purchase of the property. Bull Realty, Inc. will be paid a commission by the Seller. Prospect agrees to not be involved in any arrangement to lease or purchase the property, in whole or in part, as a lender, partner, buyer of the note, buy in foreclosure, buy from bank-ruptcy court, or in any other manner acquire an investment in or control of the prop-erty, unless Bull Realty, Inc. is included as the selling agent and is compensated as described herein. Prospect reserves the right to involve any lender, underwriter, eq-uity partners, attorney or other advisor in the transaction provided said party is paid by the Prospect, and said party has agreed in writing to this confidentiality agree-ment.

III. Governing Law This Agreement shall be governed and construed in accordance with the laws of the State of Florida.

Accepted and agreed to this _______ day of ___________________, 2012.

Prospect Signature ___________________________________________________________________ Printed Name _______________________________________________________________ Title _________________________________________________________________________ Company Name ____________________________________________________________ Address _____________________________________________________________________ ____________________________________________________________________ Email _______________________________________________________________________ Phone ______________________________________________________________________ Fax _________________________________________________________________________

You may return the executed agreement by fax (404.876.7073) or email. Bull Realty, Inc.

(FL License #CQ1026029) 1801 Piedmont Avenue

Atlanta GA 30324

net lease investment property - cimls · 2012. 9. 26. · national net lease investment group...

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